Segmenting Online Consumers Based on their Preference Developments

This study extends our current knowledge in the area of online consumer behaviors by examining how business models could influence consumer’s sales channel preferences. It argues that business models could play an important role in consumer sales channels preference development. When a business offers multiple sales channels (a hybrid model), its customers could compare sales channels either within or outside the same corporate business. Such a freedom is however diminished when a business adopts the pure Internet store business model. MANOVA and structural equation model were performed on 435 survey respondents. Four factors were tested, including product price, product variety, perceived risk to credit card, and perceived social interaction. Results reveal that consumers employ different set of factors when comparing different set of sales channels. Such results were used to draw a new set of online business strategies that could be used more effectively in this dynamically changing electronic market.